As an entrepreneur, creating your pitch is one of the most important things you’ll do. And the truth is how you present your story is as important, if not more, than what the story actually is about. The best entrepreneurs are good storytellers. Investors invest in people, and not in businesses. Of course, no matter how good your story and pitch may be, you’re going to need the product and team to back it up.
So, what are the crucial elements of a successful pitch? Here are the essential questions you should be answering in your pitch.
1. What is the problem you are solving?
And this insinuates the reason why your startup exists. The purpose here is to highlight for investors that not only is there a problem that needs to be addressed, but customers are willing to pay for the solution. Customers must love you and your product, enough to be willing to pay for the product you are building.
2. How will you solve the problem you are addressing?
Now you’ve pinpointed that there is a problem, you need to clarify the solution you are offering to solve this addressed problem. Ideas are a dime, a dozen, but the proof is in the execution. What is your market strategy? And what traction do you have so far? Explain how you’re going to target and reach your customers, and how you’re going to win them over. What channels will you use to do so, and how is your team set up to do it?
3. Why is now the right time to solve this problem?
First, you need to show here that there is a sizable market opportunity, and second, elaborate on how you can capture that market. Explaining why your startup has to grow NOW is a super important point. You need to create a certain gravity where the person on the receiving end does not want to miss out on the chance to be a part of your success.
4. Why are you the right team to solve it?
This is where you need to start selling yourself, both as the founder and the team as a whole. This is the moment where you can showcase how your past experiences will contribute to your success now. Here you need to show investors that you have the right people and the right motivation to make it happen.
5. How much money do you need to execute your proposed solution?
Knowing how much money to ask for is a whole other topic in itself, but generally: as much as you need to hit certain milestones, but as little as you can get away with to avoid too much dilution. Toward the end of your pitch, you ask for the money and specify what milestones you will hit with that amount. Focus on the outcomes and the impact. This will help an investor visualize what their money is going toward.
Once you’ve answered all these essential questions, the real challenge lies within telling your story in a way that is coherent and easy to understand. Sometimes the most difficult thing can be to explain a complex idea in a simple way: that is your job as a founder.
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